Arizona Foreclosure Laws

How are trust deeds or mortgage liens treated in Arizona? This State operates mostly in the Trust Deed, this is the primary unit of security, this makes it a “title” theory state where most property remains in Trust until the full amount owing on the deeds underlying loan has been repaid. Under this particular theory most foreclosures take place on a non-judicial basis.

The law in Arizona also allows the mortgage as a lien over property, and in the instance of a mortgage, a judicial foreclosure has to take place. Because of the fact that a power of sale clause allows a property to be sold faster in the case of a foreclosure the Trust Deed is used more often than not.

A non-judicial foreclosure does not require court action. However the trustee still has to adhere to stringent regulations regarding the foreclosure process. They have to notify the borrower that their loan is in default and follow all the prescribed actions to bring the foreclosure to culmination. The trustee is a representative of the lender and they affect a sale of the property which is generally conducted under auction conditions on the court house steps in the county where the property is situated.

If the trustee does not follow the correct process, their foreclosure may be declared null and void. A notice of sale must be published once weekly for a period of at least four consecutive weeks in a general circulation newspaper. It also has to be posted at the property in question twenty days prior to the sale, and recorded in the county recorders office. All the predetermined information including date, time and place of sale, as well as the description and address of the property and details of the trustee must also appear on the notice.